Berachain Users Questions Project’s Mainnet Launch and Airdrop

Mere days after Berachain’s mainnet launch and airdrop, the community is voicing concerns over apparent favouritism toward private investors and allegations that a lead developer has offloaded significant amounts of airdropped BERA tokens.

Despite the controversy, Berachain still has an opportunity to restore public confidence.

The successful implementation of its innovative Proof of Liquidity system could position the project as a groundbreaking force in the blockchain space.

Berachain Developers Made Questionable Decisions

Berachain, a new layer-1 blockchain, has stirred significant attention following its recent airdrop and mainnet launch.

Positioned as a pioneering network with its unique ‘Proof of Liquidity’ mechanism, the project’s marketing approach, however, mirrors the hype-driven tactics common in meme coin culture.

Before its official debut, Berachain’s pre-launch liquidity platform attracted an impressive $2.3 billion in deposits, and its 6 February mainnet launch featured one of the largest airdrops of the year.

The BERA token was promptly listed on Binance and other major exchanges following its token generation event (TGE).

Despite this strong start, concerns within the community are growing.

Many users criticised the airdrop distribution, claiming testnet participants received disproportionately small BERA rewards.

Berachain’s ecosystem operates with a trio of tokens—BERA, BGT, and HONEY—each serving distinct purposes.

However, the tokenomics structure has vulnerabilities; by strategically staking and burning different tokens, users may exploit the system.

A deeper examination of Berachain’s tokenomics has fuelled further scepticism.

A detailed thread by blockchain analyst Ericonomic highlighted key issues: over 35% of the BERA supply is allocated to private investors, inflation rates are higher than industry norms, and private stakeholders can stake BERA for liquid rewards, potentially enabling them to dump tokens on the market.

There are also allegations that a core developer has been offloading BERA tokens.

The lack of transparency surrounding Berachain’s staking model until recently has only intensified community doubts.

While Berachain claims that Proof of Liquidity will be its core innovation, this feature has yet to be fully implemented.

Given these unresolved issues, questions about the project’s long-term sustainability persist, with some fearing that BERA may exhibit the same extreme volatility as non-utility meme coins.